Tillary prepetition lender TH Holdco files separate Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Feb. 22 – A prepetition lender of 85 Flatbush RHO Mezz LLC, the owner of the Tillary Hotel in Brooklyn, N.Y., filed a Chapter 11 plan and related disclosure statement on Saturday with the U.S. Bankruptcy Court for the Southern District of New York.

Lender TH Holdco LLC filed redlined documents comparing its plan to the debtor’s previously filed Chapter 11 plan.

Like the debtor’s plan, TH Holdco’s plan would be funded using sale proceeds and available cash on hand from operations; however, if TH Holdco acquires the hotel property or residential property under a credit bid, it will finance a fund for the sole pro rata benefit of holders of 85 Flatbush RHO hotel general unsecured claims and 85 Flatbush RHO residential general unsecured claims.

Under the lender’s plan, administrative expense claims, fee claims, priority tax claims, 85 Flatbush RHO hotel other priority claims and 85 Flatbush RHO residential other priority claims are unimpaired.

TH Holdco will receive, if the hotel property or residential property is sold to a party other than itself, cash in an amount sufficient to satisfy the sum of its secured claim, together with all applicable prepetition and post-petition interest, costs and fees. Otherwise, TH Holdco will receive the property and any further distribution to which it is entitled to on its unsecured deficiency claim.

Holders of 85 Flatbush RHO Mezz other secured claims will receive, after senior claims have been paid in full, their pro rata share of the remaining cash from the plan fund, or the collateral securing their claims.

After payment is made in full to holders of allowed administrative claims, allowed priority tax claims, allowed fee claims, and allowed claims in classes 1, 2 and 3, in the event there is a surplus remaining in the plan fund, the surplus will be paid to holders of 85 Flatbush RHO Hotel other secured claims and 85 Flatbush RHO Residential other secured claims.

After payment in full of all senior claims, holders of 85 Flatbush RHO Hotel general unsecured claims will receive their pro rata share of the remaining cash from the plan fund, up to the full amount of their claims, plus amounts from the fund financed by TH Holdco, if applicable.

Holders of 85 Flatbush RHO Residential general unsecured claims will receive, after payment is made in full to holders of claims senior to these, their pro rata share of the remaining cash from the plan fund allocable to the residential property, up to the full amount of their allowed claim, plus amounts from the fund financed by TH Holdco, if applicable.

Holders of 85 Flatbush RHO Mezz other priority claims will receive, after payment in full of claims senior to these is made, their pro rata share of the remaining cash of the plan fund.

The holders of the 85 Flatbush Mezz claim will receive their pro rata share of the remaining cash from the plan fund, after payment in full of senior claims.

Holders of 85 Flatbush RHO Mezz other secured claims will receive, after senior claims have been paid in full, their pro rata share of the remaining cash from the plan fund, or the collateral securing their claims.

Holders of 85 Flatbush RHO Mezz general unsecured claims will receive their pro rata share of the remaining cash from the plan fund following payment in full of claims senior to these.

85 Flatbush RHO Mezz existing equity interests will be canceled with no distribution.

85 Flatbush RHO hotel existing equity interests and 85 Flatbush RHO residential existing equity interests will be canceled with no distribution; provided that after payment is made in full to holders with claims senior to these, and to the extent there is any remaining cash in the plan fund, those funds will be contributed to these classes, respectively.

Debtor’s plan

As previously reported, under the debtor’s plan, holders of administrative expense claims, fee claims, 85 Flatbush RHO Hotel other priority claims, 85 Flatbush RHO Residential other priority claims and priority tax claims will be paid in full.

Holders of 85 Flatbush Avenue secured claims will receive, if the hotel property and/or residential property is sold to a party other than 85 Flatbush Avenue, cash in an amount sufficient to satisfy the sum of the claims, together with all applicable interest, costs and fees. Otherwise, holders will receive no distribution.

After payment is made in full to holders of allowed administrative claims, allowed priority tax claims, allowed fee claims, and allowed claims in classes 1, 2 and 3, in the event there is a surplus remaining in the plan fund, the surplus will be paid to holders of 85 Flatbush RHO Hotel other secured claims and 85 Flatbush RHO Residential other secured claims.

After payment in full of all senior claims, holders of 85 Flatbush RHO Hotel general unsecured claims will receive their pro rata share of the remaining cash from the plan fund, up to the full amount of their claims.

Equity interests will be canceled with no distribution; provided that after payment is made in full to holders with claims senior to equity classes, and to the extent there is any remaining cash in the plan fund, those funds will be contributed to equity holders.

Holders of 85 Flatbush RHO Residential general unsecured claims will receive, after payment is made in full to holders of claims senior to these, their pro rata share of the remaining cash from the plan fund allocable to the residential property, up to the full amount of their allowed claim.

Holders of 85 Flatbush RHO Mezz other priority claims will receive, after payment in full of claims senior to these is made, their pro rata share of the remaining cash of the plan fund.

The holders of the 85 Flatbush Mezz claim will receive their pro rata share of the remaining cash from the plan fund, after payment in full of senior claims.

Holders of 85 Flatbush RHO Mezz other secured claims will receive, after senior claims have been paid in full, their pro rata share of the remaining cash from the plan fund, or the collateral securing their claims.

Holders of 85 Flatbush RHO Mezz general unsecured claims will receive their pro rata share of the remaining cash from the plan fund following payment in full of claims senior to these.

The owner of the boutique hotel in Brooklyn, N.Y., filed bankruptcy on Dec. 18, 2020 under Chapter 11 case number 20-23280.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.